Royal Host buys C$11.83 million total in ongoing normal course issuer bid for 6%, 6.25% and 5.9% convertibles

By Jennifer Chiou

New York, Jan. 9 - Royal Host REIT said it repurchased C$5.48 million of its 6% convertible unsecured subordinated debentures due Oct. 31, 2015, C$3.12 million of its 6.25% convertible unsecured subordinated debentures with a maturity date of Sept. 30, 2013 and C$3.23 million of its 5.9% convertible unsecured subordinated debentures due June 30, 2014 during its ongoing normal course issuer bid for the securities.

As already noted, Royal Host intends to purchase for cancellation up to C$5.48 million of its C$54,798,000 of 6% debentures, amounting to about 10% of Royal Host's public float outstanding amount.

The company also already added that it plans to purchase for cancellation up to C$5,888,000, or 10%, of its C$58,887,000 of 6.25% debentures as well as up to C$6 million of its C$60 million of 5.9% debentures.

Royal Host said it will pay the prevailing market price of each of the debentures on the Toronto Stock Exchange.

The bid began on Sept. 10 and will terminate on Sept. 9, 2009.

The company said it believes that, from time to time, the market price of the debentures may not fully reflect the underlying value of the securities and that the purchase of the debentures would be in the best interests of Royal Host.

Royal Host has also made purchases of C$468,000 of 7.9% convertible unsecured subordinated debentures due April 30, 2009 under previous normal course issuer bid that expired on Nov. 27.

Calgary, Alta.-based Royal Host owns hotels, manages properties and operates franchises.

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